Safeguard duty on cement backed

The Cement Manufacturers Association of the Philippines (CeMAP) is urging the government to retain the P20.60 per bag safeguard duty on imported cement.

CeMap president Rico Alfiler, in a public hearing conducted yesterday by the Department of Trade and Industry (DTI), said that the safeguard duty has been successful in reducing the influx of cheap imported cement and thus keeping local cement plants viable.

Alfiler reported that because of the safeguard, there has been no major plant shutdown and no lay-off of workers.

The local cement industry employs about 120,000 workers.

In fact, Alfiler said, local cement companies are investing in training programs for their workers.

Alfiler assured the DTI that local cement prices are still lower today compared to cement prices in November 2001 when there was still no safeguard duty on imported cement.

Prior to the imposition of the safeguard duty, Alfiler said, the prices of cement reached a high of P145 per bag.

At present, Alfiler said, the price of cement per bag is at P110. However, the DTI had recently noted that there has been a spike in cement prices.

The DTI warned that if the industry is jacking up prices, the DTI would review and possibly remove the safeguard duty to allow in imported cement and thus bring down cement prices for the benefit of consumers.